Amherst Metal Works produces two types of metal lamps. Amherst manufactures 24,640 basic lamps and 6,250 designer lamps. Its simple costing system uses a single indirect-cost pool and allocates costs to the two lamps on the basis of direct manufacturing labor-hours. It provides the following budgeted cost information:

Calculate the total budgeted costs of the basic and designer lamps using Amherst’s simple costing system.

Transcribed Image Text:

Designer Lamps $15 Basic Lamps Total Direct materials per lamp Direct manufacturing labor-hours per lamp Direct manufacturing labor rate per hour Setup costs Lamps produced per batch Setup-hours per batch General manufacturing overhead costs $9 0.5 hours 0.6 hours $20 $20 $114,000 250 50 1 hour 3 hours $120,000 Designer Lamps $15 Basic Lamps Total Direct materials per lamp Direct manufacturing labor-hours per lamp Direct manufacturing labor rate per hour Setup costs Lamps produced per batch Setup-hours per batch General manufacturing overhead costs $9 0.5 hours 0.6 hours $20 $20 $114,000 250 50 1 hour 3 hours $120,000

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Computation of total budgeted costs Particulars Basic lamp Designer lamp ... View the full answer